New SME Corp Scheme Offers Financing With Up To 40 Pct Grant Conversion

KUALA LUMPUR, Sept 8 (Bernama) -- SME Corporation Malaysia (SME Corp) has launched the Business Accelerator Programme (BAP) Alternative Financing Programme 2025, a new financing programme designed not just to lend but also to reward small and medium enterprises (SMEs).

With an allocation of RM35 million through its collaboration with microLEAP, the shariah-compliant P2P (peer-to-peer) financing platform regulated by the Securities Commission Malaysia (SC), the scheme offers SMEs up to RM400,000 in financing at 3.5 per cent per annum, with the opportunity for up to 40 per cent of the financing to be converted into a grant if repayment is timely.

"This is not simply another loan scheme. It has been designed to reward financial discipline and to directly support growth. 

"With this new allocation, the total funds under SME Corp and microLEAP’s collaboration since 2021 has doubled to RM70 million, a clear sign of a strong and maturing partnership dedicated to empowering small businesses across Malaysia," it said in a joint statement today.

SME Corp's chief executive officer (CEO) Rizal Nainy said that by enabling up to 40 per cent grant conversion, it is not only reducing the burden of repayment but actively investing in the future of high-potential Malaysian SMEs that are ready to be scaled up, in line with its target to upscale small enterprises to medium-sized enterprises from 1.6 per cent currently to five per cent by 2030.

MicroLEAP founder and CEO Tunku Danny Nasaifuddin Mudzaffar said this programme is a product of listening to small business owners, to market challenges and to policy direction.

"SMEs should not need three years of audited accounts or collateral to access financing. 

"If they’re generating revenue and growing, and they can afford the financing, we will be there to support them," he said. 

-- BERNAMA